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budget-variance-analysis

budget-variance-analysis

github.com/mohitagw15856Data & databases1.5k60 installsUpdated 5d ago
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About budget-variance-analysis

A finance analysis skill that turns actual and budget figures into variance tables, explanations, and management commentary. It helps finance teams assess material differences and their implications for forecasts.

Key features

  1. 01Budget-versus-actual variance tables
  2. 02Favourable and adverse classifications
  3. 03Root-cause commentary for material variances
  4. 04Forecast impact assessment
  5. 05Executive summary for management

Use cases

  1. 01Preparing monthly or quarterly variance reviews
  2. 02Explaining material overspend or underspend
  3. 03Assessing whether variances affect the annual forecast

Install

Copy the command and run it in a terminal.

$npx skills add https://github.com/mohitagw15856/pm-claude-skills --skill budget-variance-analysis

After installing, type/budget-variance-analysisin Claude Code to confirm it loaded.

Details

From the project README

Budget Variance Analysis Skill

Produces a complete variance analysis from numbers through to root cause explanation and management commentary.

Required Inputs

  • Actuals and budget figures (paste as table or describe line by line)
  • Period (month / quarter / YTD)
  • Materiality threshold (e.g. £10k or 5%)
  • Known reasons for variances (if any)
  • Audience (CFO / board / management / auditor)

Output Structure

1. Variance Summary Table
Line ItemBudgetActualVariance £Variance %F/A
Revenue
Cost of Sales
Gross Profit
Opex
EBITDA

F = Favourable | A = Adverse

2. Material Variance Commentary

For each variance above threshold:

[Line item] — £[amount] F/A ([%])

  • Root cause: [Specific explanation — not "timing" without detail]
  • Permanent or timing? Will this reverse next period?
  • Management action: What is being done
  • Forecast impact: Does this change full-year outlook?
3. Top 3 Variances Requiring Attention

Ranked by materiality and strategic significance.

4. Forecast Revision

Does the full-year forecast need updating? State revised expectation and key assumptions.

5. Executive Summary

3-4 sentences of management commentary suitable for a board pack.

Quality Checks

  • All variances above threshold explained
  • Root causes specific (not vague)
  • Favourable/Adverse correctly labelled
  • Forecast impact stated for material variances

Anti-Patterns

  • Do not explain a variance as "timing" without specifying which period it will reverse into and what amount is expected
  • Do not label a favourable variance on a cost line without checking whether it is due to underspend, delayed spend, or reduced activity — the cause determines whether it is genuinely good news
  • Do not omit variances below the materiality threshold entirely — note them collectively so the reader knows they exist and were reviewed
  • Do not present a variance analysis without a forecast impact statement for material items — historical variances without forward implications are incomplete

Example Trigger Phrases

  • "Write a variance analysis for these actuals vs budget: [paste]"
  • "Explain why we are over budget on [cost line]"
  • "Write the variance commentary for our finance review"
  • "Produce a budget vs actual analysis for Q[N]"

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